Local business owners are sharing their concerns over potential impacts of proposed tariffs.
“For the 17 years we’ve been here, we've been here at 14th Street, we’ve been a neighborhood gathering spot,” said Khalid Pitts, one of the owners. “That’s what we think of ourselves as, a neighborhood gathering spot…”
Cork Wine Bar and Market has been a neighborhood staple.
“Good food, you know, great wine but at a value price…” Pitts said.
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Owners Pitts and Diane Gross said they’ve built their brand around affordable, imported old world wines from countries like France, Spain, Italy, Germany and Austria.
They’ve been so successful, their 14th Street location is always buzzing any night of the week. They now have another spot in Spring Valley on Massachusetts Avenue, and they just signed a lease for a Cleveland Park location.
However, the couple said they now may have to put a cork in their plans to expand.
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“There’s a state of flux of what to do next,” Pitts said.
In fact, they said if President Donald Trump's proposed tariffs on wine and spirits imported from the European Union goes into effect, their entire business could dry up.
“Bottom line is this is an attack on small business because the big guys will be able to absorb higher tariffs,” Gross said.
Last week, Trump threatened to slap a 200% tax on imported European booze as early as next month after the EU placed a 50% tariff on American bourbon, which was a response to the Trump administration's tariffs on steel and aluminum.
This week, European leaders announced they would delay their tariff while they negotiate.
And Pitts said the potential impacts of that trade war would be devastating since about 95% of their business relies on imported wines.
“Everything's going to triple so… I mean it’s not even not doable…” Gross said. “All of those wines in that class from like $13 to you know $23-$24 which are our sweet spot are now going to be like $40-$65 and it’s just not going to work anymore.”
Adding insult to injury, they said the threat of added costs comes as many in D.C. are spending less going out, and given the nature of their business, they don’t have the capital or the space to buy in bulk.
“Just to be clear, I mean, no business really, no small business really can absorb a 200% increase,” Pitts said.
“I mean all we can do is push hard and say, you know, ‘Please don’t do this, you’re really going to hurt small businesses if you do,’” Gross said.
Right now, Gross and Pitts said they just have to wait and see how this trade war will play out, but if those tariffs go through they don’t know how long they would be able to stay open.
